Marketing Segmentation and Strategies of Nike

Running head: MARKETING MANAGEMENT
Marketing management
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1MARKETING MANAGEMENT
Question: 1
Marketing segmentation is the process of dividing the target market customers on the
basis of different criterions. This is being done due to the reason that segmenting the target
market helps the business organizations to shortlist the customers in accordance to the offerings
of the organizations. Thus, it enables the organizations to determine the taste and preference
pattern of the particular segment and offer the products accordingly.
There are number of segmentation strategies being initiated by Nike in order to target
their customers. One of the major segmentation strategies being initiated by them is demographic
segmentation. According to this strategy, Nike targets the younger generation customers and
offer and design their products in accordance to their product portfolio. This reflects in their
youthful and energetic product portfolio and strategy (Craft and Hassan 2015). Another major
segmentation strategy being initiated by them is geographical segmentation. In accordance to this
segmentation strategy, Nike targets the specific regions for their products especially the
metropolitan cities and tier I cities. Behavioral segmentation strategy is also being initiated by
Nike involving the behaviors and attributes of the target customers. For instance, customers with
having inclination towards the innovative products and having the preferences for latest
technologies are the target customers of Nike (Cuadros and Dominguez 2014). This reflects in
the latest and innovative product offerings of Nike. Thus, initiation of different segmentation
strategies is helping Nike to have more diverse target market customers.
Question: 2
The major marketing strategy being followed by Nike is cost leadership and market
focus. They promote cost leadership by outsourcing their manufacturing facilities to the

2MARKETING MANAGEMENT
developing nations such as Vietnam and Pakistan. This helps them to reduce the cost of
production and increase the average rate of profitability in their business (D. Banker,
Mashruwala and Tripathy 2014). Another marketing strategy practice by Nike is market focus.
This is due to the reason that Nike operates in a niche product category in the global market with
having more premium products. Thus, initiation of the market focus strategy helps them
effectively determine the focused segment and offer products accordingly. Another major
marketing strategy being followed by Nike is product diversification strategy. This helps them to
have their presence in different sectors such as sportswear, footwear and accessories. This also
helps them to have more market share and brand exposure in the global market.
Brand equity of Nike is more related to the premium branding. This is mainly due to the
reason that majority of the products of Nike are priced premium and are targeted towards the top
of the pyramid. Thus, initiation of the market focus strategy is helping Nike in effective
identification of the need and requirement of the target customers (Huang and Sarigollu 2014).
On the other hand, with the help of the product diversification strategy, Nike is enhancing their
market share in the global market by offering more diverse and varied products (Chen et al.
2014). This is also helping Nike to have more competitiveness in the market in competing with
their major rivals such as Adidas and Reebok.
Question: 3
The segmentation strategies followed by Nike are different if being compared to the
broader global footwear market. This is due to the reason that in the global footwear market,
companies are operating in different customers sections across different price levels. Thus, the
segmentation strategies of these companies are also different in accordance to the different price